Calculated Industries 3420 User Guide - Manual (Page 65)

64 — Q UALIFIER P LUS ® III X
APR, Total Finance Charges (Including Mortgage Insurance)
You are financing a mortgage of $275,000 for 30 years at a nominal
or quoted rate of 6.25% interest. The cost of getting the loan is quot-
ed as 1.5 points plus $550 in fees. What is the APR (including
Mortgage Insurance), total finance charges, principal amount
financed, total cost, P&I payment, monthly Mortgage Insurance, and
PIMI payment? Mortgage Insurance is estimated at 0.65% of the
loan amount.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 2 7 5 ) l 275,000.00
Enter Interest 6 • 2 5 ˆ 6.25
Enter Term 3 0 T 30.00
Find monthly Payment p “run” 1,693.22
Enter Mortgage Ins. % • 6 5 Â 0.65
Find Loan Costs:
Recall Loan Amount ® l 275,000.00
Find point cost x 1 • 5 % = 4,125.00
Add fees and find total + 5 5 0 = 4,675.00
Find APR* s ˆ “run” 7.24
Find finance charges (including
Mortgage Insurance*
and total Interest paid)
ˆ 392,860.03
Find amount financed
(Principal minus pts/fees) ˆ 270,325.00
Find total finance charges
plus amount financed ˆ 663,185.03
P&I Payment ˆ 1,693.22
Mo. Mortgage Insurance ˆ 148.96
PIMI Payment** ˆ 1,842.18
*APR includes Mortgage Insurance, if entered. Total finance charges include mort-
gage insurance over the life of the loan, to present a worst-case scenario; however,
most people can eliminate MI once a certain LTV is met.
**Payment includes estimated monthly Mortgage Insurance.
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